Auto Insurance Claims: Heater Seat Fire - General Release, subrogation and release


Question
My car's front seat experienced a malfunction while the heater was on, burning the passenger.  The car has been at the BMW dealer for over 5 weeks now where the BMW of North American sent out an investigator who found a "seat heater grid malfunction".  I had purchased an extended/full warranty when I bought the car and do not need BMW's goodwill to replace the seat.  But, they want me and my passenger, my brother (a spinal cord injury person who was burned and treated) to sign a general release.  My concerns:  I asked to see the investigation report and they haven't complied; I want this  incident reported nationally so it will count if a recall is needed;  asked for them to investigate the driver's seat which they said they don't do as it didn't malfunction; I'm concerned if they replace one seat it will reduce car value since it won't exactly match other front seat and will this be reported on carfax; I'm creeped out by the car:0( -- what would you do?

Answer
Your case could potentially be very important.  I would not sign any kind of release with BMW.  A manufacturing defect could be the cause of the issue, and if so, then your damages would need to be addressed as a negligence claim.  If you have MED-PAY on your policy, I would seek the assistance of my carrier in determining whether I could sign a release that would not interfere with their subrogation rights.  

Depending on the severity of the burn, and the official cause of the loss, your auto insurance carrier (if they pay for the replacement of the seat under the comp portion, and if they pay for med pay) will have a subrogation case that they can pursue either under common law warranty issues or an applicable statute of repose.

Anyway, don't sign a release, and get your auto insurance company involved.  If you don't have auto insuance, find the highest ranking BMW official you can, and write to them concerning your issues.

Your vehicle will likely not suffer any huge diminished value because of the replacement of a seat, if the heat damage was not extensive and didn't cause damage to any other components of the vehicle.  Maintain records of the replacement for proof that it was not anything other than the heater malfunction that caused the need for replacement.  The claim will likely not show up on carfax or autocheck.